Issue date: 9/10/04 Section: Opinion

Aramark's recent venture into the video rental business sets a troubling precedent. Traditionally, Penn Student Agencies has handled DVD rentals on Penn's campus through the Video Vault in Houston Hall. There is some concern that Aramark's entry into this market does not bode well for PSA's business.

We understand the need for competition; indeed, this sort of competition generally benefits Penn students. However, there is a balance that must be maintained between healthy competition and Aramark using its superior marketing and financing to drive PSA out of business.

Some say that the superior selection, cheaper prices and student employees will keep the Video Vault from being seriously threatened by Aramark's DVD rental store. While that may be true, the fact remains that Aramark has a lot more resources to throw behind its DVD rental store. Also, the Video Vault is not as well-known to Penn students as it could be, while Aramark's DVD store, by virtue of its location in 1920 Commons, is a hub of Penn student activity. It may simply reap the benefits of daily student foot traffic.

As far as Aramark's future ventures into providing student services go, we strongly discourage the company from deviating too far into sectors that PSA is already active in. For example, if Penn Dining were to start providing a laundry service to students, that would clearly be an encroachment on PSA's business domain.

PSA is an important organization. It is almost entirely student run and is a steady supplier of work-study jobs. Its presence on Penn's campus has been a positive one, and we hope that it continues. We encourage Penn students to keep PSA in mind when making their decisions on where to rent DVDs.

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